I must say..this is simplest media server which works straightway on PS3. I was using fuppes earlier now switched to this. I have a feature request which i guess would improve its performance.

How about keeping a cache file for each file (which needs transcoding) in db. This cache will be filled first time the file is played and correspondingly transcoded. The transcoded file (upto say initial 100 MB) can be kept in the cache file (which is persitent), so that next time if i play the same file it play straight away (since transcoded cache is available straightaway). This cache size should be configurable along with enable/disable option. Or ...user can configure overall (total) cache file (say 1GB at appropriate location) and PSM manages this cache file appropriately (allocating it to different file as needed).

If you look at the initial release notes (I believe this was on the blog), one of the reasons Shagrath started developing this server was to get away from the TVersity-esque method of creating temp files for transcoding. The real issue is that you have a delay when transcoding, so the cache wouldn't be needed if PMS throughput could get increased via some other method. But that's just my $.02

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I think this feature will be particularly useful for slower machines (i guess even p4 would be slower in case of transcoding at HD)..i would assume in some way it would help avoid jitter (apart from slow play) on slower machine..In my case, I have converted my older linux machine into NAS and all my media storage lies there. I run PSM on that machine. For my kind of user ..which i guess would be quite many..will benifit from this.

Additionally added advantage of improved seeking support etc. I am not an expert here so can't say about technical complexity..etc... but this should be bring competitive advantage, if this somehow address the issue of slower machine.

If PSM is running as service then i guess PSM start up time shouldn't be an issue.